Peru Inflation August 2019

Peru: Inflation inched down in August

September 6, 2019

Consumer prices ticked up 0.06% over the previous month in August, following July’s 0.20% month-on-month fall. August’s increase was largely the result of higher prices for transport, communication and recreation more than offsetting lower housing rental costs and diminished prices for fuels and electricity.

Meanwhile, inflation inched down to 2.0% from July’s 2.1%, hitting the midpoint of Central Bank's target range of 2.0% plus or minus 1.0 percentage points. In August, core consumer prices, which exclude energy and food prices, increased 0.2% from the previous month, up from July’s 0.1% uptick. Finally, core inflation in August came in at July’s 2.3%.

Panelists participating in the LatinFocus Consensus Forecast expect inflation to end 2019 at 2.3%, which is unchanged from last month’s projection. For 2020, the panel expects inflation of 2.4%.

Economic activity shrank 3.4% year-on-year in the first quarter of the year, the fastest contraction since Q1 2001, after expanding 1.8% in Q4 2019.
Hampered by Covid-19 fallout, the downturn was spearheaded by a severe contraction in the external sector, which subtracted 2.2 percentage points from the overall outturn (Q4: 0.0% year-on-year).

Merchandise exports plummeted 37.6% over the same month last year in March, the worst reading on record, as restrictions on movement to fight the Covid-19 pandemic disrupted production in the country and external demand for goods also evaporated amid the health crisis (February: -2.4% year-on-year).

Sign up for our newsletter

Cookies Policy: We use third-party cookies to improve our services by analyzing your browsing habits.
By continuing to use this website you are giving consent to cookies being used. For more information on cookies and how you can disable them, see our "Cookies Policy".
Close